Durbin: US 'fiscal cliff' solution unlikely before election

Reuters

WASHINGTON, July 29 (Reuters) - The U.S. Congress isunlikely to resolve looming tax and spending issues before theNov. 6 elections, a top Senate Democrat said on Sunday, butlawmakers are working on a proposal to tackle the issue afterthe elections.

Dick Durbin, the No. 2 Democrat in the Senate, said abipartisan group of eight lawmakers is in talks to develop asolution to the steep tax increases and spending cuts, known asa "fiscal cliff," that take effect at the end of the year if noaction is taken.

Speaking in an interview on CNN's "State of the Union,Durbin gave no details about the group, but said: "We believethere is a responsible, reasonable, way to move forward, and weare going to try to put something on the table to beconsidered."

He said the political environment ahead of the elections "isnot one for compromise and negotiation."

"But if we are prepared the day after the election to moveforward with a plan that restores confidence in the economy, andthe ability of Congress to react to it, it's going to be apositive thing for us," Durbin said. "I think we can do it."

The Democratic-controlled Senate on Wednesday passed a billto renew tax cuts for tens of millions of Americans whileletting some rates rise for the wealthiest, but the legislationis certain to be rejected by the House of Representatives, whichis controlled by Republicans.

Unless Congress acts, across-the-board income tax cuts areset to expire on Dec. 31, and deep, automatic spending cuts of$1.2 trillion over 10 years are slated to begin on Jan. 2.

Republican Senator Kelly Ayotte of New Hampshire, speakingon the same program, accused Democrats of using the military asa "bargaining chip" in the negotiations, but said she was"willing to sit down with members of both sides of the aisle" tofind a solution.

"Let's resolve this before the election," Ayotte said.

Ayotte was asked about reports that she is on a short listof potential running mates for Republican presidential candidateMitt Romney.

"It's certainly an honor to be mentioned, but ... servingNew Hampshire in the Senate, addressing these fiscal issues,that's where my priority is," she said.